Cogent Comms (CCOI) AI Stock Analysis

• Market Cap: $1.15B
• Dividend Yield: 16.13%
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• Revenue Growth: -6.48%
• EPS Growth: -588.01%
• Country: US
• Employees: 1,899
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -0.87
• Shares Outstanding: 49,121,160
• 10 Day Avg. Volume: 1,708,845
• 30 Day Avg. Volume: 1,283,931
• PEG Ratio: 0.15
• Price to Book (P/B): 16.44
• Price to Sales (P/S): 3.54
• P/FCF Ratio: -17.99
• Enterprise Value/Market Cap: 3.68
• Enterprise Value/Revenue: 5.70
• Enterprise Value/Gross Profit: 17.68
• Enterprise Value/Ebitda: 25.42
• 1Y Price Target: $33.30
• Price Target Upside: 50.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11
• EPS Forecast (FY): -4.39
• Revenue Forecast (FY): $988.21M

• Rating: 40 Underperform
• Price Target: $23.50 ▲(6.24% Upside)

Cogent Comms' overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. While there are some positive aspects such as high dividend yield and growth in specific services, the company's high leverage and declining revenues pose significant risks. The earnings call provided some optimism for future growth, but current challenges overshadow these prospects.

Positive Factors

Wavelength Services Growth

The significant growth in wavelength services positions Cogent to capture a larger market share, enhancing its competitive edge and long-term revenue prospects.

EBITDA Margin Expansion

Improved EBITDA margins indicate operational efficiency and potential for sustained profitability, strengthening financial health over time.

Data Center Monetization

Monetizing data centers will provide liquidity and reduce leverage, enhancing financial stability and strategic flexibility.

Negative Factors

High Leverage

High leverage limits financial flexibility and increases risk, potentially impacting long-term growth and investment capacity.

Revenue Decline

Declining revenue trends raise concerns about market competitiveness and demand, challenging long-term growth prospects.

Dividend Reduction

Dividend cuts may signal financial strain, affecting investor confidence and potentially limiting future capital raising capabilities.

Cogent Comms Business Overview & Revenue Model

Company Description

Cogent Communications Holdings, Inc., through its subsidiaries, provides high-speed Internet access, private network, and data center colocation space services in North America, Europe, Asia, South America, Australia, and Africa. The company offers on-net Internet access and private network services to law firms, financial services firms, and advertising and marketing firms, as well as heath care providers, educational institutions and other professional services businesses, other Internet service providers, telephone companies, cable television companies, Web hosting companies, media service providers, mobile phone operators, content delivery network companies, and commercial content and application service providers. It also provides Internet access and private network services to customers that are not located in buildings directly connected to its network; and on-net services to customers located in buildings that are physically connected to its network. In addition, the company offers off-net services to corporate customers using other carriers' circuits to provide the last mile portion of the link from the customers' premises to the network. Further, it operates data centers that allow its customers to collocate their equipment and access the network. The company operates 54 data centers and provides facilities to 3,035 buildings and on-net services to 1,817 to multi-tenant office buildings. It serves primarily to small and medium-sized businesses, communications service providers, and other bandwidth-intensive organizations. Cogent Communications Holdings, Inc. was founded in 1999 and is headquartered in Washington, the District of Columbia.

How the Company Makes Money

Cogent Communications generates revenue primarily through the sale of Internet access and data services. The company's key revenue streams include monthly recurring charges from customers for bandwidth and connectivity services, as well as one-time setup fees for new installations. Cogent also earns revenue from colocation services, where customers pay for space and power within its data centers to house their servers and equipment. Additionally, strategic partnerships with other telecommunications providers and content delivery networks enhance its service offerings and expand its customer base, contributing to its overall earnings. The company's focus on providing competitive pricing and high-quality service helps retain customers and attract new business, further solidifying its revenue model.

Cogent Comms Financial Statement Overview

Summary

Cogent Comms faces significant financial challenges, including declining revenues, high leverage, and negative profitability. While there are some operational efficiencies and improvements in free cash flow, the overall financial health is concerning, with risks stemming from high debt levels and negative returns.

Income Statement

Cogent Comms shows a declining revenue trend with a negative revenue growth rate of -1.40% TTM. The company has struggled with profitability, evidenced by negative net profit and EBIT margins. However, the gross profit margin remains relatively stable, indicating some operational efficiency. The EBITDA margin is positive, suggesting potential for operational improvements.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 49.18 TTM, indicating significant financial risk. The return on equity is negative, reflecting poor profitability relative to shareholder equity. The equity ratio is low, suggesting limited financial stability and high reliance on debt financing.

Cash Flow

Cash flow analysis shows a negative operating cash flow, indicating challenges in generating cash from operations. However, the free cash flow to net income ratio is positive, suggesting some ability to cover net losses. The free cash flow growth rate is positive, indicating some improvement in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	745.59M	1.04B	940.92M	599.60M	589.80M	568.10M
Gross Profit	240.19M	394.27M	396.69M	371.45M	363.46M	348.95M
EBITDA	167.11M	161.69M	1.56B	229.29M	218.72M	156.28M
Net Income	-194.71M	-204.07M	1.27B	5.15M	48.19M	6.22M
Balance Sheet
Total Assets	3.15B	3.17B	3.21B	1.01B	984.56M	1.00B
Cash, Cash Equivalents and Short-Term Investments	226.29M	198.49M	75.09M	223.78M	319.61M	371.30M
Total Debt	2.65B	2.34B	1.83B	1.36B	1.26B	1.21B
Total Liabilities	3.19B	2.95B	2.60B	1.53B	1.36B	1.29B
Stockholders Equity	-39.17M	222.85M	609.56M	-518.63M	-373.10M	-293.17M
Cash Flow
Free Cash Flow	-186.70M	-203.64M	-112.29M	94.74M	100.34M	84.37M
Operating Cash Flow	9.95M	-8.64M	17.34M	173.71M	170.26M	140.32M
Investing Cash Flow	-96.64M	21.49M	76.73M	-78.97M	-69.92M	-55.95M
Financing Cash Flow	-1.41M	105.92M	-257.85M	-144.85M	-140.82M	-116.00M

Cogent Comms Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCOI, the sentiment is Negative. The current price of 22.12 is below the 20-day moving average (MA) of 39.82, below the 50-day MA of 39.32, and below the 200-day MA of 49.75, indicating a bearish trend. The MACD of -3.58 indicates Positive momentum. The RSI at 15.64 is Positive, neither overbought nor oversold. The STOCH value of 1.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CCOI.

Cogent Comms Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IDT	68 Neutral	$1.27B	16.79	27.60%	0.45%	2.13%	18.44%
IRDM	64 Neutral	$1.76B	14.68	22.59%	3.46%	7.30%	21.31%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
LBTYA	55 Neutral	$3.61B	-0.97	―	―	―	―
TDS	49 Neutral	$4.07B	―	1.73%	0.41%	-22.79%	79.90%
WOW	49 Neutral	$440.52M	―	-42.79%	―	-8.70%	16.20%
CCOI	40 Underperform	$1.15B	―	-136.94%	16.13%	-6.48%	-588.01%

Cogent Comms Corporate Events

Cogent Communications’ Q3 2025 Financial Performance Overview

Cogent Communications, a multinational Tier 1 facilities-based Internet Service Provider (ISP), specializes in offering high-speed Internet access, Ethernet transport, optical wavelength, optical transport, and colocation services through its all-optical IP network backbone across 302 global markets.

Cogent Communications’ Earnings Call: Mixed Results and Strategic Shifts

The recent earnings call for Cogent Communications painted a mixed picture of the company’s current financial health and future prospects. While there were notable achievements such as significant growth in wavelength services and EBITDA, challenges like a dividend cut, revenue decline, and increased net leverage were also highlighted. The call reflected a balance of positive achievements and significant hurdles that the company needs to address moving forward.

Cogent Comms Announces Leadership Change in Sales

On August 11, 2025, Cogent Communications Holdings, Inc. announced the upcoming retirement of James Bubeck as Vice President of Global Sales and Chief Revenue Officer, effective September 2, 2025. Mark Andrew Harris, who joined the company in 2023 following its acquisition of Sprint Communications, will assume the role, potentially impacting the company’s sales strategy and market presence.

The most recent analyst rating on (CCOI) stock is a Sell with a $65.00 price target. To see the full list of analyst forecasts on Cogent Comms stock, see the CCOI Stock Forecast page.

Cogent Communications’ Earnings Call: Growth Amid Challenges

Cogent Communications’ recent earnings call painted a picture of mixed sentiments, with notable achievements in certain areas overshadowed by ongoing challenges. The company reported robust growth in wavelength revenues and improved liquidity through strategic debt restructuring. However, these positives were tempered by a sequential revenue decline, price pressures, and high leverage, which could impact the company’s ability to sustain dividend growth without additional borrowings.

Cogent Communications Reports Q2 2025 Earnings

Cogent Communications, a multinational Tier 1 facilities-based Internet Service Provider, specializes in high-speed Internet access, Ethernet transport, optical wavelength, optical transport, and colocation services across 302 global markets.